Hitachi Energy has announced a long-term agreement with E.ON, valued at up to $700 million USD, to supply power and distribution transformers critical to the modernization and expansion of Germany's power grid.

This marks one of Hitachi Energy's largest-ever contracts in Germany and aligns with the country's push for infrastructure upgrades following recent elections and a newly announced €500 billion federal investment fund focused heavily on energy systems.

The agreement secures manufacturing capacity for E.ON as Germany faces a growing electricity demand--from 96 TWh in 2024 to an estimated 236 TWh by 2035--driven by the electrification of vehicles, heat systems, and AI-powered data centers.

Transformers play a central role in enabling stable and efficient electricity transmission. Currently facing global shortages, they are critical to Germany's climate and energy goals. To meet this demand, Hitachi Energy is executing a $9 billion global capacity expansion, including the recent expansion of its Bad Honnef transformer facility.

With over 2,000 employees across eight locations in Germany, Hitachi Energy will deliver transformers under the agreement as part of E.ON's procurement initiative.

"Our expansion goes beyond business - it reflects our responsibility to accelerate capacity and deliver critical equipment," said Andreas Schierenbeck, CEO of Hitachi Energy.

This deal supports the country's ambitions to develop a more resilient and sustainable energy infrastructure in response to rising consumer energy concerns and increasing demand across sectors.